Booz Allen Hamilton (BAH) Advances While Market Declines: Some Information for Investors

Zacks
17 Jan

Booz Allen Hamilton (BAH) ended the recent trading session at $136.30, demonstrating a +0.17% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.21% loss on the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.89%.

The defense contractor's shares have seen an increase of 2.02% over the last month, surpassing the Business Services sector's loss of 2.5% and the S&P 500's loss of 1.56%.

The investment community will be closely monitoring the performance of Booz Allen Hamilton in its forthcoming earnings report. The company is scheduled to release its earnings on January 31, 2025. It is anticipated that the company will report an EPS of $1.48, marking a 4.96% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.83 billion, up 10.31% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.25 per share and a revenue of $12 billion, demonstrating changes of +13.64% and +12.57%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Booz Allen Hamilton currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 21.76. This denotes a discount relative to the industry's average Forward P/E of 22.38.

One should further note that BAH currently holds a PEG ratio of 1.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Consulting Services industry stood at 1.64 at the close of the market yesterday.

The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BAH in the coming trading sessions, be sure to utilize Zacks.com.

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